“Kyivstar enters renewables: why telecom business wants to buy a solar power plant
31 October 21:22
on September 23, Kyivstar filed an application with the AMCU to buy renewable electricity producer Sanvin 11 LLC. Why the leading mobile operator wants to enter the renewable electricity market, "Komersant Ukrainian" analyzed.
The Committee itself confirmed the information in a request from Forbes Ukraine on October 29. Kyivstar representatives themselves explain that their interest in generation is pragmatic: it is an additional insurance against blackouts and a step towards greater energy stability of the communication network.
Who is Sunwin 11 and what kind of asset is being acquired?
“Sanvin 11 is registered in Odesa and has revenues of UAH 81.8 million in 2024, which is a moderate scale on the market (for comparison, the segment leader Elementum Energy had revenues of UAH 4.1 billion in 2023). According to Energo.ua, the company operates one solar power plant in Zhytomyr region with a capacity of 12.95 MW. Ownership structure: Cyprus-based Merestone Limited; ultimate beneficiaries: Natalia Bohacheva (Czech Republic) and Petro Rosenkrantz (Israel). Rosenkrantz is one of the earliest investors in renewable energy in Ukraine: back in 2011-2012, his related SunElectra projects announced a 25-30 MW line of SPPs in Odesa region, and in 2023-2024, his companies were listed as suppliers of balancing capacities for Ukrenergo.
Regulatory regime and feed-in tariff
The key detail of the asset is the electricity sales regime. According to industry experts, SPP Sanvin 11 will be connected to the feed-in tariff until the end of 2029. This means a guaranteed sales channel at a regulated price, but at the same time, restrictions on Kyivstar’s direct self-consumption. To power its own infrastructure directly, the plant should be connected to the consumer’s internal grids rather than selling the entire volume to the market at a feed-in tariff. Amid the general instability of the tariff model in renewables (payment delays, revisions of approaches), it is green assets that are currently difficult to sell, market participants say.
Why does a telecom operator need power generation?
The operator directly articulates the energy motive. Stable generation near critical nodes of the mobile network is a way to reduce the risks of long outages during peak hours and massive attacks. However, the purchase of Sanvin 11 looks more like a first step in diversification: the operator is working on a “learning curve” in renewables on a relatively small project to understand the economics, connection technology, and regulatory risks before scaling up.
Pilots and parallel directions: SPPs and wind turbines on telecom masts
At the same time, Kyivstar is testing its own energy projects. In 2024, the company invested about UAH 10 million in pilot SPPs in Odesa and Zhytomyr regions to measure actual savings and decide on expansion. The company is also considering small wind turbines to power base stations: the idea is to use existing telecom masts 30-40 meters high to install compact turbines and local production. A subsidiary of Ukraine Tower Company has shown interest in this format. So far, it is more about a feasibility study than a capital-intensive deployment.
Read also: “Kyivstar is preparing to open American and global markets for Ukraine
Financial context of Veon Group
Entering the energy sector is in line with the strategy of the parent Veon. Back in November 2024, CEO Kaan Terzioglu announced almost $0.5 billion of liquidity in Ukraine and a willingness to invest in related sectors, including electricity generation and distribution. For the telecom group, this is a way to reduce operating energy costs, increase service reliability in times of war, and open up new sources of cash flow if the portfolio is balanced between the feed-in tariff and self-consumption projects.
Risks and limitations: what can go wrong
Even with the feed-in tariff, generation is not a “magic pill.” In addition to tariff risks and cash gaps in renewables, there are technical challenges: network infrastructure limitations, the need for storage systems to operate at peak, the cost of backup diesel or gas plants, and balancing issues with local consumption. If the goal is to power base stations directly, you will have to solve the problems of connection, microgrid management, and synchronization with the general power system. If the goal is to generate investment income, the operator will focus on the stability of payments under the feed-in tariff and market conditions.
What’s next: scenarios for Kyivstar in the energy market
The most likely short-term scenario is that Kyivstar closes the deal with Sunwin 11, integrates the asset into its portfolio, and continues pilots to supply local power to critical infrastructure. Two tracks are possible: expanding the portfolio of “green” assets under the tariff model or focusing on its own generation solutions in the microgrid format with storage and hybrid generation (solar/wind/gas). Both approaches are not mutually exclusive and can go hand in hand, reducing the cost per kilowatt-hour for the grid and increasing its resilience.
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